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What: Shares of hardwood flooring retailer Lumber Liquidators
So what: Citing weak year-to-date results and uncertain demand, Lumber Liquidators now expects earnings of $1.00 to $1.15 per share on revenue of $670 million to $700 million, versus the average analyst estimate of a $1.19 per share profit on sales of $711.5 million. The shares had been on a nice run over the past month, trading at a lofty-ish P/E of 30 as of yesterday's close, so today's big plunge comes as no surprise as investors look to significantly readjust their growth expectations.
Now what: Unless you're willing to handle some short-term pain, Lumber Liquidators isn't exactly the best place for your money. "The pressures challenging large-ticket purchasing decisions may continue to be volatile into the second half of the year, potentially resulting in continued consumer caution," CEO Jeffrey Griffiths said in a statement. Of course, for longer-term investors looking for a good deal on a quality company, today's pullback in Lumber Liquidators could be providing that opportunity.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Lumber Liquidators, and The Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days.